Presentation by Sentech Limited to the Portfolio

Committee on Communications

2005 budget vote

11 March 2005

Team

Gladwin Marumo Chief Operating Officer

Dingane Dube Executive, Regulatory Affairs and Government Relations

Johan Koekemoer Executive, Finances and Administration

Johan Raath Executive, Office of the COO

“The third world is under-developed mainly because it missed the industrial revolution, for whatever reason, slavery, colonisation

etc.Unless it hops on the information

superhighway and is part of the communication age, the 21st century will be a

re-enactment of the 20th”

Ron BettigProfessor of Communications1990

Sentech Achievements since we were last here

• Finalised commercial rollout of the MyWireless service

• Gauteng Online – 1100 schools in phase 1• Providing connectivity to MPCC’s on

ongoing basis• Delivered world class television and radio

service with the aging analogue transmitter network

• Growing as a communication player with major impact

• Teleradiology to Eastern Cape ongoing

Sentech Radio and Television Transmitting Stations

Sentech broadcasting infrastructure

Television transmitters 552

FM Transmitters 723

Medium Wave Transmitters 16

Short Wave Transmitters 15

The cost of staying analogue

• High maintenance cost• Tech dump site• No revenue growth• Costly for broadcasters• Poor use of spectrum• No new services• Digital divide widens

Impact of Tariff regime on Medium-Sized Radio Station

0%

10%

20%

30%

40%

50%

60%

1996 1997 1998 1999 2000 2001 2002 2003CPITariff IncreaseCost of Maintenance % of TariffSD as % of Broadcasters Operating Costs

Impact of Tariff regime on Community Radio Station

Community Radio station

0%

20%

40%

60%

80%

1998 1999 2000 2001 2002 2003CPITariff IncreaseCost of Maintenance % of TariffSD as % of Broadcasters Operating Costs

World trend

• Digitisation – the pace is picking up • Convergence is key• Managed liberalisation fundamental

Digital Terrestrial Television

• Digital transmission of signals• Efficient use of spectrum

– More broadcasters

• Multiple language capabilities– Cultural and content diversity

• Interactivity– Every TV set provides universal access

capabilities

• e-Government• New applications

New Applications on DTT

• DVB-H– Television on mobile– The future of video streaming– Video phone calls

• Interactivity is the name of the game

Digitisation – key for South Africa

• Digital terrestrial television (DTT) is a key component of digitisation for South Africa.– R300m cost of transmitter replacement.– Set-top-box / decoder.

• Digitisation policy key– Standards– Migration– Subsidisation

• 2010 World Cup

Why is it important?

• Need to modernise infrastructure• Sentech is a broadband player• Television is broadband• New Sentech Network is broadband• True convergence

Funding anomaly

• R 400 million provided to SABC to digitise infrastructure– This is a good decision, they need to

prepare

• Nothing provided to Sentech

• Sentech must be ready for 2010 World Cup

The test platform works

• Sentech has proven the technology and the service

• Now we need to expand the platform• This will make DTT as well as all of the

advantages of DTT possible

Sentech needs

• Capital Injection– R300 million (dollar sensitive)

Regional Television

• National commitment• Important for communication with and

for our communities• The cost of rollout is projected at R240

million

Sentech’s Integrated Platform

IP Decoder

3G modem

3G Mobile

VSAT

Other Pt to M-Pt

Applications Access

DVB Decoder / DAB Decoder

DVB PCI Card

Video / Audio &Enhanced Services

Video &IP Streaming

GSM & DVB-H / DAB

Video & Audiostreaming

Video & Audiostreaming

High SpeedInternet

Internet & VoIP

Internet

TV & RadioDistribution

VoIP(voice)Gateway

Video BackhaulMulticast IP

Content Streaming

Application Services

DVB Platform

TDMA / Docsis

High SpeedInternet

WiFI High Speed Internet

High Speed Internet

Sentech Core Networks

NSN Core

Transport

Thank-You